2024.09.05. The Fair Economy — The Fair Trade Commission announced on the 5th that measures including a reduction in brokerage fees for small business owners were announced at the 'Accommodation Platform Self-Regulation Plan Presentation' held at the Grand Ballroom on the 3rd floor of the main building of The-K Hotel Seoul.
This presentation was attended by Yanolja and GC COMPANY, two accommodation platform operators, as well as members of the platform self-regulation committee's strong-weak division, including the Internet Business Association, Accommodation Industry Association, Small Business Association, and Korea Federation of Small and Medium Business, as well as government officials such as the FTC Vice Chairman.
The self-regulation plan consists of ▲establishing measures for coexistence with and easing burdens on business users (affiliated owners) ▲improving listing contract practices ▲improving dispute resolution procedures between platforms and business users (affiliated owners), and is expected to contribute to establishing fair trade practices in the accommodation platform market and to substantially easing burdens on listed businesses.
In particular, for the first time in a self-regulation plan, all platform operators participating in the consultations agreed to reduce brokerage fees for small business owners listed on their platforms.
The government, considering the complex and intertwined interests in the platform market, has promoted the introduction of self-regulation as a national task to prioritize resolving the Gap-Eul issue between platform operators and small business owners. As a result, self-regulation plans for major platform sectors such as delivery apps, open markets, and accommodation apps have been sequentially established and are in operation.
In the accommodation app sector, discussions began in September last year, and over the past year, private participants have discussed self-regulation measures applicable to the accommodation app industry, resulting in this "Accommodation Platform Self-Regulation Plan." Unlike previous self-regulation plans for delivery apps and open markets, this plan is distinctive in that all platform operators participating in the consultations announced fee reduction measures for small business owners as a coexistence plan.
The 'Accommodation Platform Self-Regulation Plan' announced this time consists largely of three parts: ▲establishing measures for coexistence with and easing burdens on business users (affiliated owners) ▲improving listing contract practices ▲improving dispute resolution procedures between platforms and business users (affiliated owners).
The FTC assessed that this accommodation platform self-regulation plan is meaningful in that, through consultations among stakeholders, all platform operators included measures to ease burdens on small business owners through fee reductions.
Cho Hong-seon, Vice Chairperson of the FTC, said, "The self-regulation plan announced today is significant in that it was prepared with content necessary for the development and coexistence of the accommodation industry through active communication and consultation among stakeholders," and added, "I hope that a culture of coexistence based on dialogue among stakeholders will spread throughout the industry, making the platform ecosystem healthier."
Jung Myeong-hun, CEO of GC COMPANY, said, "GC COMPANY holds the philosophy that coexistence and mutual growth with affiliated owners also benefit GC COMPANY, and we will continue to strive for the interests of affiliated owners, the convenience of users, and the development of local communities and the accommodation industry," and added, "As a leading accommodation platform in Korea, GC COMPANY promises to do its best to contribute to the development of leisure culture in Korea."
Bae Bo-chan, Head of the Platform Division at Yanolja, said, "Yanolja deeply recognizes its responsibility and role for the sustainable growth of the travel and tourism industry, and along with this self-regulation, we plan to carry out various activities to make Korea a tourism powerhouse in the future."
Jung Gyeong-jae, Chairman of the Korea Accommodation Association, said, "As the impact of accommodation platforms on the accommodation industry and the cost burden on small business owners have grown rapidly, this is a time when coexistence and cooperation are needed," and added, "It is regrettable that only some affiliated businesses are subject to fee reductions, but since this accommodation platform self-regulation has opened a forum for dialogue, I hope that continuous dialogue will lead to gradual improvements."
Heo Yeong-hoe, Vice Chairman of the Korea Federation of Micro Enterprise (KFME), said, "We positively evaluate the government's mediation efforts that led to the self-regulation plan," and added, "Especially, agreeing on a coexistence measure of fee reductions for small business owners for the first time in self-regulation is very encouraging and is expected to serve as a ladder for mutual growth in the platform industry."
The FTC stated, "Regarding this accommodation platform self-regulation plan, considering the changing market environment, we have decided to review it again when the implementation period of the coexistence and burden-easing measures ends," and added, "We plan to continue supporting the implementation checks and review discussions of the accommodation platform self-regulation in the future."
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